c. Any payments received at any time by Lessor or Lessee from any insurer with respect to loss or damage to the Aircraft shall be applied as follows:
(i) if such payments are received with respect to an Event of Loss they shall be paid to Lessor, but to the extent received by Lessor, (x) they shall reduce or discharge, as the case may be, Lessee’s obligation to pay the amounts due
to Lessor under Section 15(b) hereof with respect to such Event of Loss, or (y) if the Aircraft is being replaced pursuant to Section 15(b) they shall be paid to Lessee on the consummation of the closing for such replacement; and any
excess above Stipulated Loss Value shall be paid to Lessee; or (ii) if such payments are received with respect to any loss of or damage to the Aircraft other than an Event of Loss, such payment shall, unless a Default or an Event of Default
shall have occurred and be continuing, be applied to the repair of the Aircraft or paid to Lessee forthwith upon completion of such repairs. 

 If an Event of Default shall have occurred and be continuing, such payments shall be paid to Lessor and applied to any amount due and payable to Lessor hereunder. Both Lessor and Lessee agree to cooperate with each other to ensure that any
payments from insurers are paid in accordance with this subsection. 

 **16. General Indemnity.**